19. A home-team baseball victory produces benefits for residents (in terms of hometown pride) that is both
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19. A home-team baseball victory produces benefits for residents (in terms of hometown pride) that is both nonrival and nonexcludable. The graph below depicts the marginal benefits that Beatrice, Edward, and Charlotte (the residents of a very tiny town indeed) receive from home-team wins. The graph also depicts the marginal costs of achieving each victory.
a. Draw the total marginal benefit received by hometown residents. Graph your result carefully.
b. Determine the socially optimal number of wins. Indicate this amount on your graph.
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Related Book For
Microeconomics
ISBN: 9780716759751
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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